Following the introduction of the flexible pension rules, those who dipped into their pension funds were filling out a P55 form to reclaim any extra tax they paid. But this form was chiefly designed for savers who only want to take one lump sum a year from their nest egg. Under the new rules, many intend to make several withdrawals a year....read

The Commons Public Accounts Committee, chaired by Margaret Hodge, said each new tax relief was complicating the tax system, instead of simplifying it, creating opportunities for avoidance as there was no ‘adequate system of control’. But the Treasury said the accusations were ‘extraordinary’, claiming the majority of the tax reliefs were used by ordinary families and pensioners....read